Gold price today January 9: Conquering new peak

Opening at 8:30 a.m. on January 9, the domestic gold bar price was listed by DOJI Gold and Gemstone Group at: VND 36.47 million/tael (buy) and VND 36.57 million/tael (sell), unchanged in both buying and selling compared to yesterday afternoon.

Saigon Jewelry Company listed the price of SJC gold at VND36.40 million/tael (buy) and VND36.62 million/tael (sell), unchanged from the late afternoon of January 8.

As of early morning on January 8 (Vietnam time), the spot gold price stood at 1,318.5 USD/ounce.

The price of gold for February delivery on the Comex New York floor stood at $1,320/ounce.

Currently, the price of gold is 14.6% higher (+168 USD/ounce) than at the beginning of 2017. World gold converted to the bank USD price is 36.5 million VND/tael, excluding taxes and fees, about 0.1 million VND/tael lower than the domestic gold price.

Gold prices are hovering around a three-and-a-half month high despite profit-taking pressure and a recovering US dollar. Demand for gold during the traditional Lunar New Year in Asia is supporting and could push prices to new highs.

In the last session of last week and the beginning of the week in the Asian market, gold fell from a peak of more than 3 months due to the recovery of the USD in the context of investors expecting the US to continue to raise interest rates this year.

However, the decrease was quite small and gold is on an upward trend with demand coming from Asia. Accordingly, January is the month when demand for precious metals increases sharply before the Lunar New Year.

Some forecasts suggest that spot gold prices could hit $1,329 an ounce and then correct further.

The US dollar has rallied in recent sessions after the US Bureau of Labor Statistics said that last December, the US unemployment rate was quite stable at 4.1%.

The greenback also rose as many members of the US Federal Reserve (Fed) expressed their views that interest rates should be raised quickly in 2018, at least three times. San Francisco Fed President John Williams said that the Fed should raise interest rates three times (and possibly more) this year because the economy is strong and will be better thanks to tax cuts.

Cleveland Federal Reserve Bank President Loretta Mester also said that a healthy US economy and low unemployment rate are the basis for four interest rate hikes in 2018.

Minutes from the Fed’s December meeting released last week showed policymakers were divided on future interest rate policy, with some saying three rate hikes would be too many, while others said three would be too few.

Technical analysis shows that gold is in a short-term downtrend. The nearest resistance level is: 1,325 USD/ounce and then: 1,329 USD/ounce. The nearest support level is: 1,310 USD/ounce and then: 1,275 USD/ounce.

In the Vietnamese gold market, in yesterday's trading session, domestic gold prices decreased by about 100,000 VND compared to the end of last week's session.

At the end of the session on January 8, DOJI Gold and Gemstone Group listed the price of SJC gold at: 36.47 million VND/tael (buy) and 36.57 million VND/tael (sell). Saigon Jewelry Company listed SJC gold at: 36.40 million VND/tael (buy) and 36.62 million VND/tael (sell).

According to Doji, the gold market fluctuates little, with alternating increases and decreases. The number of customers who sell still accounts for the majority (60%) of the total number of customers participating in transactions at DOJI.